Why Should Markets be Worried About a No-Deal Brexit?

UK PM Boris Johnson is scheduled to meet with European Commission Chief Ursula von der Leyen on Wed to start negotiations on post-Brexit

Brexit in Focus

UK PM Boris Johnson is scheduled to meet with European Commission Chief Ursula von der Leyen on Wednesday to start negotiations on post-Brexit relations between Britain and the EU. Expectations are high that Johnson will continue to insist on a hard deadline at the end of the transition period with no possibility for extension at the meeting.

After coming back to power in December’s general elections, Johnson added a clause for a hard deadline to end the transition period after Britain exits the Union. According to a statement from his office, Johnson is likely to “stress the importance of agreeing a confident and positive future relationship by the end of December 2020.”

It remains to be seen how accepting the EU will be of such a clause as senior officials have repeatedly raised concerns if the short period would prove adequate for negotiating trade and other aspects of post-Brexit relations between the two regions. The fears of a no-deal Brexit are back to haunt markets in case London and Brussels fail to finalize a trade agreement by the end of this year.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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